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Tax planning strategies for business optimal financial performance

Tax Planning Strategies for Optimal Financial Performance 

By Accounting Advice

It should be well-understood that effective planning is a key ingredient in achieving business success. Winston Churchill famously said, “He who fails to plan is planning to fail.” Among the elements of effective business planning, tax planning is critical to obtain optimal financial performance.   What is Optimal Financial Performance  Financial performance is an assessment of a company’s financial health through the analysis of its assets, liabilities, expenses, revenues, and profit. The analysis is conducted utilizing the company’s balance sheet, cash flow…

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Financial statements analyzing your business's health financial

Important Financial Statements: Analyzing Your Business’s Health

By Accounting Advice

No business can ignore or be nonchalant about its financial health and still survive. Financial health is critical, and moving forward successfully requires regularly and rigorously analyzing your business’s financial health.  What is Financial Health and Why is it Important  “Financial health” simply means the financial condition of a business. It includes the volume of money flowing into a business compared to the amount of money flowing out of the business, along with its liabilities and debts. These must be…

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Person handling business expenses how long their small business survive without income

How Long Can a Small Business Survive Without Income?

By Small Business Advice

Business is clearly more than just “show me the money.” But certainly, money is critical. As Henry Ford stated, “Business must run at a profit, or else it will die.” And John Mackey, co-founder of Whole Foods added, “Just as people cannot live without eating, so a business cannot live without profits.” So, how does a small business survive? It requires a continuing revenue stream, positive cash flow, and profits.  Revenue and Income  Sometimes the terms “revenue” and “income” are…

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Business bookkeeping wrong outsource for accuracy

What Can Happen If I Do My Business Bookkeeping Wrong? 

By Accounting Advice

Business clearly isn’t only about numbers. But numbers do matter significantly. If cash flow and profit numbers don’t work, there is just no business. Thus, as it has frequently been said, “Know your numbers.” Gathering and recording the business’ numbers are key duties of your bookkeeper, so to get the data you need to make good decisions, it is critical not to do business bookkeeping wrong.  What is Bookkeeping  Every business should have current, organized, and reliable data. That data is the…

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Business with an office pet

Can an Office Pet Help Your Business Financially? 

By Small Business Advice

Businesses used to be very pet averse. But that changed gradually as “new age” companies like Google and Amazon embraced the “pet culture” that Millennials wanted. Since the COVID-19 pandemic when many workers enjoyed working at home with their pets, many companies now have office pet policies. Consider this short list as an example: Ben & Jerry’s, Bissell, Clif Bar, Build-A-Bear Workshop, Etsy, Glassdoor, Kabbage, and Kimpton Hotels. This makes sense, in part, because about 70 percent of the U.S. population…

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Teamwork prepare your business for busy seasons

How to Prepare Your Business for Busy Seasons 

By Small Business Advice

Every small business owner likely hopes for plenty of “smooth sailing” for his/her business. But the reality is that virtually all businesses experience problems and unexpected challenges from time to time. Compounding these is the reality that most businesses will experience some type of seasonality that may put pressure on staffing, inventory, and finances. For all businesses that have seasonal swings, the key is to prepare your business to help you achieve your desired results. This included preparing your business for…

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Business owner review your business's financial condition

How Often Should You Review Your Business’s Financial Condition 

By Small Business Advice

Noted financial and business expert Warren Buffet, has said that “accounting is the language of business” and businesspeople must know how to read and interpret financial statements. The clear consensus among accounting experts is that business owners should review your business’s financial condition each month. Among other institutions, Princeton University requires “regular, at least monthly” reviews for its organizations.  Why You Should Review Your Business’s Financial Condition Monthly  Clearly, to have an accurate bearing on a business’s financial condition, financial reports must be kept…

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Prioritize profits or growth in your business concept finances

Should I Prioritize Profits or Growth in My Business? 

By Small Business Advice

A business owner may ask, “Which is more important, profits or growth?” Clearly, both are critical. Still, noted author and management consultant Peter Drucker said pointedly, “Profitability is the sovereign criterion of the enterprise.” And Hendrith Vanlon Smith, Jr., CEO of Mayflower-Plymouth added, “If a business is not profitable, It’s worthless.”  While profits don’t necessarily guarantee growth, no business can succeed in the long run if the business is stagnant.   Why Profitability is Important  Continuing to earn a profit is important because it means that…

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